Mumias-based Nitunze Sacco, formerly Mumias Out-growers Sacco Society, lost its licence because members defaulted on the entire Sh160 million loan portfolio as the sugar industry ran into problems.
According to the Sacco Societies Regulatory Authority (Sasra), Nitunze failed to meet its financial obligations largely due to the fact that nearly all it members were sugarcane farmers, many of whom obtained loans from the sacco hoping to repay using proceeds from farming.
